Where do stores get their DVDs?
 

I'm just curious:

Does anyone know where retail stores get their DVDs from? Straight from the studios or from distributors? How can places like DeepDiscountDVD be so cheap? Do they have to order insane quantities?

Actually I've been toying with the idea of opening a store myself and am trying to figure out if it's feasible that I'd be able to compete with places like Best Buy.

Thanks.
Buster.

I'll give you some help here.

BestBuy sells new releases cheaper than dealer cost. So does a few warehouse chains. A lot of independent retailers are getting really hurt by BestBuy and the warehouses.

Also, Universal and Best Buy have an agreement to release a particular DVD two weeks before any other retailer gets it. That hurts other major retailers as well as the little guy.

My thoughts for the day.

which DVD was/is it?

U2 - Elevation Tour 2001 - Live
from Boston

11/20 - Best Buy
12/4 - Everyone Else

--->
Universal Music and Video Distribution has given Best
Buy an exclusive two-week window on the new music
video by rock band U2, U2 - Elevation Tour 2001 - Live
from Boston. "It's coming out at Best Buy on Nov. 20
and to the rest of the world on Dec. 4," says
Thrasher, v.p. of video purchasing for Tower Records
and Video, a 100-store audio-video combo chain based
in West Sacramento, Calif

He doesn't like that one bit, but he's not just
getting mad, he's going to get even. "I don't think
we're going to buy it at all," Thrasher says. "If they
want their music video business to go to Best Buy,
that's Universal's call."

This is an interesting situation, but unfortunately,
that's all I know. Jim Weatherson, executive v.p. with
Universal Music and Distribution, did not return phone
calls.

By the way, the U2 DVD appears on the Amazon.com Web
site as being available Dec. 4. Based on advance
orders, the title is No. 64 on Amazon's top DVD
sellers list

It's also listed on Best Buy's Web site as being
available Dec. 4. But a clerk at the chain's Costa
Mesa, Calif., store, contacted last night, said
according to his computer, his stores will have copies
Nov. 20. "We don't have an advertised price for it
yet," he says, "but usually, the first week, it will
be on sale."

I can't offer any specifics about the DVD retailers we all know and love, but I know one of the biggest distributors of books in Ingram. At one of my previous jobs, the computer center (where I worked) was an authorized higher education reseller for several different product lines, and we got a lot of stuff from Ingram Micro. I don't know for a fact that they handle DVDs, but I'd be surprised if some part of their operation didn't. If you go to www.ingram.com there should be something about how to sign up as a customer.

There was an article in the NY Times a couple years ago about a "shoestring" Amazon competitor that you might find interesting.

http://www.nytimes.com/library/opini...22699frie.html

I can't speak for ALL stores, but most get their DVDs (and CD's, books, etc.) from bulk distributors such as:

Baker & Taylor
Valley (though not so much anymore...they are on shaky financial ground)
Alliance
and so on...


As to your question about DDD, I don't know...although I find it interesting that on the two occasions I have ordered from them, both times the "new" DVDs had fingerprints all over the data side of the disc. Food for thought.

ok, here is the answer

most of the stores (well, Wal-Mart, Target, Sam Goody, K-Mart, Best Buy, etc) get thier DVD's, CD's, VHS title, etc from a company called <b>HANDLEMAN</b>, which incidentally is the parent company of popular DVD distributor <b>ANCHOR BAY ENTERTAINMENT</b>, as well as hated DVD distributor <b>MADACY ENTERTAINMENT</b>. Handleman currently distributes products to 4,100 retail companies across the United States, Canada, Mexico, Brazil, and the United Kingdom.

Handleman
 

I think Handleman only does CD distribution. Evidence of this is that over at the Anchor Bay web site, they list other distributors for retail sellers to contact. If Handleman distributed DVDs, you'd think they'd distribute their own products.

Anchor Bay distribution page

Is it time for the smarta$$ reply??
 

They get dropped off in middle of the night by the DVD Fairy....



:)

The larger retailers Best Buy, Borders, etc. buy directly from the studios. The studios only sell directly to an account if they do a lot of business. Otherwise, it's not worth it for the studios to have a sales rep call on smaller accounts on a regular basis.

Mom & pop stores and smaller chains have to go through a third party distributor already mentioned like Baker & Taylor, AEC/Alliance, Valley, etc. or a smaller video distributor.

Handleman used to handle video but no longer does. They only "rack" department/discount stores such as KMart, WalMart, Target, etc. Anderson is another wholesaler that deals with these type of accounts.

I think AAFES gets our DVD's from corporate. At least that's what I've been told by fellow B/X employees, the forklifters and stockers. I'm not sure if we buy any DVD's directly from any studios or not.

I saw a batch of DVDs arriving at Borders and the boxes said Ingram on them. I know Borders gets books from Ingram.

I deal with Ingram on the computer side (Ingram Micro) but I don't run into their book or DVD products. I have a feeling small quantities from them would not be able to be sold profitably.